HC Deb 15 March 1881 vol 259 cc1057-8
SIR GEORGE CAMPBELL

asked the Financial Secretary to the Treasury, Whether the instalment of the loan of two millions due from India has been paid in the current year 1880–81; and, whether the amount so due is to be a set-off against or to be added to the amount of £500,000 proposed to be granted in aid of the Afghan War?

LORD FREDERICK CAVENDISH

The Act of 1879 authorizing the advance of £2,000,000 to India requires the Government of India to repay £290,000 on account of the principal of that loan before the close of the current financial year. No payment has been made by India in performance of that condition, nor is the limit of time granted for such performance as yet reached. Her Majesty's Government will introduce a Bill releasing India from the obligation to repay the loan; but if that Bill should not become law before the 31st instant they will not press India to make a payment which Parliament has been asked to remit. Her Majesty's Government propose to pay £500,000 in the current year to India, irrespective of the sum due by India on account of the loan which is to be remitted.